Regions face air-link crisis Govt warned

The New Zealand Airports Association (NZAA) claims that up to 12 smaller airports face a funding crisis and it is challenging the Government to step up with $32 million to ensure their survival.

In launching the FlyLocal NZ campaign, association chief executive Kevin Ward said the country’s airports were split into ‘‘haves and have-nots’’.

Air links from regional airports were as important as state highways in promoting economic growth and employment, and in disaster response, he said.

They also played a growing role in delivering healthcare. Between 6000 and 10,000 patients and medical staff were flown between smaller towns and city base hospitals each year.

‘‘Millions of dollars are poured into roads and rail, and for less than the cost of one bridge, the Government could secure the future for local airports and air services,’’ Ward said.

The campaign is seeking cross-party support for $32m over five years to help pay for critical facilities such as landing lights, runways, and terminals, and to underwrite the cost of passenger services where necessary.

Once the ‘‘catch-up’’ work had been done, about $5.2m a year in ongoing funding would be sufficient, said Ward.

A report titled Linking the Long White Cloud puts the case for redirecting income from Government shares in larger airports such as Christchurch, which last year paid the Crown $8.2m in dividends.

The isolated communities aviation fund would target airports classed as non-commercial because they handled fewer than 200,000 passengers annually and were unable to cover their running and maintenance costs.

Those on the list included Kaitaia, Kerikeri, Whangarei, Whakatane, Gisborne, Taupo, Whanganui, Masterton, Timaru, Westport, Hokitika and the Chatham Islands.

The Government owns a half-share in five regional airports but Ward said it provided only limited infrastructure funding, and a lot of the smaller airports were losing up to $300,000 a year.

Financial pressures had been exacerbated by the ‘‘fiercely commercial’’ approach of bigger airlines which had pulled out of smaller centres, and by Airways’ need to return a profit from provision of air traffic control services.

‘‘The way these two make their business decisions is going to determine the future for the whole sector and really that may not be in the regional or national interest,’’ said Ward.

The NZAA report pointed out that airport subsidies for isolated communities were common overseas. Every other OECD country funded regional air transport.

The proposed New Zealand isolated communities aviation fund would allocate about $3m a year to underwrite air services that were not commercially viable.

Operators could, for example, receive a guaranteed amount if passenger loadings failed to meet a minimum level and Ward said he understood this form of subsidy was already being paid by some local authorities.

A change to the Airport Authorities Act would also be necessary as it required all airports to be operated and managed as commercial enterprises.

Having strongly lobbied for its share of infrastructure funding, the tourism industry sympathises with the airports’ position.

Tourism West Coast chief executive Jim Little said the region would be vulnerable in the event of a major natural disaster.

‘‘The West Coast is served by one gorge and three passes and if they close, the airports [at Westport and Hokitika] are going to be critical, particularly if they need to bring in an Hercules for emergency relief. ‘‘

Tourism Industry Aotearoa chief executive Chris Roberts said the infrastructure assessment it published earlier this year identified real issues with smaller airports unable to handle increased visitor numbers.